EUR/JPY rallies past 144.00, eyes long-term high at 145.45

• The euro breaks above 144.00 to approach September's peak of 145.45.
• The yen remains weak, with the USD/YPY at a 34-year high.
• Investors are wary about the possibility of a BoJ intervention.

The euro maintains its firm tone against a battered Japanese yen on Friday. The pair has extended its recovery from levels sub 141.00 earlier this week, to extend beyond 144.00, with September’s peak, at 145.45 on sight

The Japanese yen drops across the board

The common currency has capitalized on the broad-based Japanese yen’s weakness, to appreciate nearly 2.5% so far this week. The yen is suffering against its main peers, with the USD/JPY reaching a 34-year high on Friday.

The greenback has actually broken past the level that triggered an intervention by the Bank of Japan last Month, which has set investors on alert. On Thursday, Japanese finance minister Suzuki reiterated the government’s commitment to take action against excessive currency volatility.

The yen is under strong negative pressure, weighed by the Fed – BoJ monetary policy divergence. With most of the major central banks immerse in a steep monetary tightening cycle, and the Federal Reserve expected to increase rates by 0.75% for the fourth consecutive time in November, the ultra-expansive policy of the Japanese Central bank is crushing demand on the yen.

Technical levels to watch